Investment Banker Salary Averages, Updated for 2016

Below are the 2016 compensation levels by position. Analysts come straight from undergrad, while associates come from business schools or are promoted internally from the analyst position.

The data ranges below are for bulge bracket and established boutiques. Smaller, lesser known middle market firms tend to pay less. You’ll notice that bonuses are down a bit compared to last year’s bonuses. This was expected because of a significant drop in 2016 deal volume (bonuses are largely tied to deal volume and overall bank performance) . However, many expected far worse numbers for analysts. It appears that at least so far, the brunt of bonus cuts are falling on more senior bankers.

The reason for the not-so-bad analyst numbers is that banks are continuing to struggle with retention. Junior analysts continue getting poached by private equity and other opportunities earlier into their analyst stints than ever before. Recall that in 2015, investment banks also increased base salaries in an attempt to stay competitive in recruiting.

First Year Investment Banking Analyst (2016)

Base: $85k
Bonus: $65-$80k

Second Year Investment Banking Analyst (2016)

Base: $90k
Bonus: $75-$90k

Third Year Investment Banking Analyst (2016)

Base: $90-$100k
Bonus: $90-$110k

First Year Investment Banking Associate (2016)

Base: $120-$140k
Bonus: $90-$120k

Beyond First Year Associate (2016)

At the associate level, compensation starts to vary more widely. At the highest end, associates can make as much as $250-300k. The next level up is Vice President, which makes up to $450k. Highest on the food chain is the Managing Director, who makes anywhere from 500k to several million dollars.